Free UAE Tool — Updated 21 June 2026
UAE Gratuity Calculator 2026
Estimate your UAE end-of-service gratuity under Federal Decree-Law No. 33 of 2021, Article 51. Covers private-sector employees in the UAE mainland and federal-law free zones (JAFZA, DMCC, RAKEZ, DAFZ, SAIF, Masdar, KIZAD, Meydan). For DIFC and ADGM employees, see the scope notes below.
Estimate only. Velmont Crest provides advisory, preparation and support — not legal advice or an official statement of entitlement. See full disclaimer at the foot of the page.
The formula
How UAE gratuity is calculated under Article 51.
First 5 years
21 days / year
21 days of basic salary per year of service for the first 5 years.
After year 5
30 days / year
30 days of basic salary per year for every additional year beyond year 5.
Statutory cap
2 years basic wage
Total gratuity is capped at 2 years of basic wage (24 × monthly basic), per Article 51(7).
Formula
Daily basic wage = monthly basic ÷ 30
Gratuity (≤5 yr) = daily basic × 21 × years
Gratuity (>5 yr) = (daily basic × 21 × 5)
+ (daily basic × 30 × additional years)
Partial year = full-year amount × (months ÷ 12)
Cap = total ≤ 24 × monthly basicStatutory basis: Federal Decree-Law No. 33 of 2021, Articles 51–53 · Cabinet Resolution No. 1 of 2022, Articles 29–30 · Cabinet Resolution No. 96 of 2023 (Voluntary Alternative Savings Scheme).
Worked examples
Three real cases — verified against the formula.
Click any example to load it into the calculator above and verify the result yourself.
Scope
Who this calculator is for — and who it isn't.
In scope
- ·Private-sector employees on the UAE mainland
- ·Free zones that follow federal labour law (JAFZA, DMCC, RAKEZ, DAFZ, SAIF, Masdar, KIZAD, Meydan)
- ·Full-time employees on the now-mandatory fixed-term contracts
- ·Part-time employees (with the part-time toggle, applying Art. 30 CR 1/2022)
- ·Employees with 1+ years of continuous service
Out of scope
- ·DIFC employees — covered by DEWS scheme (or qualifying alternative); monthly contributions replace lump-sum gratuity
- ·ADGM employees — separate ADGM Employment Regulations 2024 apply
- ·UAE and GCC nationals — GPSSA pension contributions, not federal gratuity
- ·Domestic workers — separate regime under Federal Decree-Law 9 of 2022
- ·Employers enrolled in the Voluntary Alternative Savings Scheme (Cabinet Resolution 96/2023) — post-enrolment benefit is a fund balance
- ·Article 44 cases where a court has ordered forfeiture
UAE gratuity FAQs
Common gratuity questions, answered with statute references.
How is gratuity calculated in the UAE in 2026?
Under Federal Decree-Law No. 33 of 2021, Article 51, gratuity is calculated as 21 days of basic salary per year for the first 5 years of service, then 30 days of basic salary per year for every additional year. The total payment is capped at 2 years of basic salary. Calculation is on the last basic salary only — allowances are excluded.
Am I entitled to gratuity if I resign?
Yes. Under the post-2022 UAE Labour Law (Federal Decree-Law 33 of 2021), an employee who has completed at least 1 continuous year of service is entitled to the full calculated gratuity on resignation. The old 1/3 and 2/3 reductions from the 1980 law no longer apply to current fixed-term contracts.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated on the last basic salary only, per Article 51(5). Housing allowance, transport allowance, utility allowance, commissions, bonuses, and overtime are excluded from the calculation base.
What is the maximum gratuity I can receive in the UAE?
The maximum is two years of basic salary (24 × monthly basic wage), per Article 51(7). Any calculation that exceeds this cap is reduced to the cap amount.
Do I get gratuity if I'm dismissed under Article 44?
Not automatically forfeited. Under Federal Decree-Law 33 of 2021, gratuity is no longer automatically forfeited for Article 44 dismissals. Forfeiture now requires a court ruling on proven grounds — a major change from the previous 1980 law. If you have been dismissed under Article 44, take qualified legal advice before assuming your gratuity is lost.
Does probation count toward gratuity service?
If you complete probation and continue working, your full service time (including the probation period) counts toward the 1-year gratuity threshold and the calculation. Employees dismissed during probation do not qualify, because they have not yet reached 1 continuous year of service.
How does unpaid leave affect my gratuity?
Unpaid leave days are deducted from your continuous service period when calculating gratuity, per Article 51(4). Paid annual leave, sick leave, and maternity leave count fully toward your service period.
When must my employer pay my gratuity?
Within 14 days of your last working day, per Article 53. The same 14-day window applies to all final settlement entitlements — gratuity, unpaid wages, leave encashment, and any other amounts due.
Does this calculator work for DIFC or ADGM employees?
No. DIFC employees are covered by the DIFC Employee Workplace Savings (DEWS) scheme or a qualifying alternative — monthly employer contributions replace lump-sum gratuity. ADGM employees are covered by the ADGM Employment Regulations 2024, which use different procedures. Use a DIFC- or ADGM-specific calculator, or speak to a UAE-licensed advisor for your case.
What changed with the Voluntary Alternative End-of-Service Savings Scheme?
Cabinet Resolution No. 96 of 2023 introduced an optional savings scheme that took effect on 1 November 2023. Employers can opt to contribute to an SCA-approved investment fund (5.83% of basic salary monthly for the first 5 years, 8.33% thereafter) instead of accruing traditional gratuity. Participation is voluntary at the employer level. Gratuity accrued before enrolment is preserved; this calculator estimates traditional gratuity only.
Can my employer deduct anything from my gratuity?
Yes, under Article 29 of Cabinet Resolution 1 of 2022 — proven outstanding loans, recoverable overpayments, court-ordered debts, and damages caused by proven negligence may be deducted. The employer must be able to substantiate each deduction with documentation.
Do UAE nationals get gratuity?
UAE and GCC nationals in the UAE private sector are covered by GPSSA pension contributions, not the federal gratuity scheme. Their end-of-service entitlement comes through the pension scheme rather than the Article 51 gratuity calculation.
What if I worked less than 1 year?
Under Article 51(1), gratuity entitlement begins only at 1 continuous year of service. Below that threshold, no statutory gratuity is payable. Your contract may, of course, offer better terms than the statutory minimum — check the wording of your employment contract.
How is gratuity calculated for part-time work?
Part-time gratuity is calculated as (contracted annual hours ÷ full-time annual hours) × 100 × full-time gratuity amount, per Article 30 of Cabinet Resolution 1 of 2022. The calculator above includes a part-time toggle that applies this formula.
What if my contract was an unlimited-duration contract before 2022?
All mainland contracts had to convert to fixed-term by 31 December 2023, per Ministerial Resolution 27 of 2023. Service spanning both the pre-2022 and post-2022 regimes can raise transitional questions. For tenure that crosses both periods, get specific advice — this calculator applies the current Federal Decree-Law 33 of 2021 formula throughout.
Important — please read before relying on this calculation
This calculator provides a non-binding estimate of end-of-service gratuity for private-sector employees on the UAE mainland under Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022 (Articles 51–53 and Article 29 respectively), as in force on the date shown above.
It does not cover: employees of entities in the Dubai International Financial Centre (DIFC) or Abu Dhabi Global Market (ADGM); UAE or GCC nationals contributing to GPSSA; domestic workers under Federal Decree-Law No. 9 of 2022; or employees whose employer has enrolled in the Voluntary Alternative End-of-Service Savings Scheme under Cabinet Resolution No. 96 of 2023 (for which the post-enrolment benefit is a fund balance, not a calculable gratuity figure).
It does not address: disputes under Article 44 where a court has ordered forfeiture; permissible deductions under Article 29 of Cabinet Resolution 1 of 2022; transitional issues for service that spans the pre- and post-2022 regimes; or fact-specific issues such as proven misconduct, unauthorised absence, or contract irregularities.
Velmont Crest Accounting provides advisory, preparation and support services in accounting, payroll, VAT and corporate tax compliance. We are not a registered FTA tax agent, a licensed legal practice, or an FTA/MOHRE representative. Nothing on this page or in the calculator output constitutes legal advice or an official statement of your entitlement. For binding determinations, refer to your employment contract, your MOHRE-registered file, and a UAE-licensed legal advisor.
By using this calculator, you accept that Velmont Crest Accounting and its affiliates accept no liability for any decision taken in reliance on the result.